Other things constant, if the Fed decreased the discount rate,
a. the earnings of the Fed would increase.
b. the incentive of commercial banks to borrow from the Fed would be reduced.
c. the prime interest rate would automatically decline.
d. commercial banks probably would reduce their excess reserves and be more willing to extend additional loans.
D
Economics
You might also like to view...
If Chinese consumers want to buy US goods, they will
a. Buy Yuan and sell US Dollars b. Sell Yuan and buy US Dollars c. Neither buy nor sell Yuan d. Neither buy nor sell dollars
Economics
Which of the following is concerned primarily with price discrimination?
a. The Sherman Antitrust Act. b. The Clayton Act. c. The Robinson-Patman Act. d. The Celler-Kefauver Act.
Economics